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- U.S. builder confidence improves slightly in April
U.S. builder confidence improves slightly in April
The National Association of Homebuilders (NAHB) announced on Tuesday its
housing market index (HMI) rose one point to 63 in April, the highest reading
since October 2018.
Economists forecast the HMI to increase to 63.
A reading over 50 indicates more builders view conditions as good than
poor.
Two out of the three
HMI components were higher this month. The indicator gauging current sales
conditions rose one point to 69, and the component measuring the traffic of
prospective buyers increased three points to 47. These gains, however, were
offset by a 1-point drop in the measure charting sales expectations in the next
six months, to 71 in April.
NAHB Chairman Greg Ugalde said: “Builders report solid demand for new
single-family homes but they are also grappling with affordability concerns
stemming from a chronic shortage of construction workers and buildable lots.”
Meanwhile, NAHB Chief Economist Robert Dietz added: “Ongoing job growth,
favorable demographics and a low-interest rate environment will help to
modestly spark sales growth in the near term. However, supply-side headwinds
that are putting upward pressure on housing costs will limit more robust growth
in the housing market.”
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